Do We Need To Pay ESIC ??

Dear All,
My company is not coming under ESIC area. But we do have contract labour and our contractor is coming under ESIC area.
As per my knowledge, one has to pay ESIC if that factory is comig under ESIC. In short, place is of work is also important when we think of ESIC.
Please let me know, do we need to pay ESIC to that perticular contractor's employees ?
Regards,
Resh

dear sir,
answer did'nt clearify the the question why to pay esi(contractors employees) if area does not come under esic?
regards,
rajesh kumar

if your factory is under ESI covergae, then you need to comply for esi for directly and indireclty employed person ( if total exceeding 20 persons).

Dear Rajesh,
The workman working for the contractor is covered under ESI Scheme. They are covered because they work for the contractor who is in the coverage area. The workmen come for work wherever the contractor posts them, hence they are covered.

Hi!
1. If the contractor's establishment is located in an area where the ESI Scheme is in force, his establishment stands covered under the ESI Act, provided he is employing 20 coverable employees including those working at various sites. He has to obtain a code number from ESI and comply in all respects.
2. If some of his employees are working on regular basis in areas where there is no ESI Scheme(non-implemented area), the contractor can seek exemption for them under Section 88 of the Act.
3. The principal employer's factory/estt. which is engaging these contract workers is located a non-implemented area, he is not liable under ESI either for his directly employed workers or workers engaged through the contractor. He has no liability for the contract workers under ESI. However, the employer is liable under the workmen's compensation Act.
Ramana Murty, Hyderabad

Yes if the contractor's office comes under ESI limits you have to pay.
On the other hand if you dont pay you may strenthen the hands of contract labour in claiming permanancy. Thy may claim that as I am working at your end I am not covered under ESI Scheme.
Generalist91

Sir,
I fully support the views of kvrm2002.
It is on the part of the contractor to decide whether he want to comply or seek exemption u/s 88 in r/o his employees.The principal employer is certainly not responsible for their compliance under the ESI Act.
regards.
BNP Singh

dear
yes as a principal employer, need to take eisc registration for establishment engaging contractor having 20 or more emp.

i hope the issue is solved by the following information.
COVERAGE UNDER THE ESI ACT, 1948
The Act is applicable to the factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .
The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).
AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories
STATES
All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.
UNION TERRITORIES
Delhi, Chandigarh and Pondicherry